<p>The New Zealand Government has bought back its rail and ferry operations for NZ$665m ($555m), Toll Holdings revealed today (Monday, May 5).</p> <p>Toll managing director Paul Little made it plain that Asia would be the focus of its added liquidity.</p> <p>“Proceeds from the disposal will further enhance Toll’s capacity to aggressively pursue acquisition based growth consistent with our Asian region growth strategy,” Mr Little said. </p> <p>The long-awaited deal involves payment of NZ$665m for equity plus a six-year rent free period on existing premises, with Toll retaining the Tranzlink business. </p> <p>Settlement was expected by June 30, with a management transition period. The estimated book value of assets disposed of was NZ$430m. </p> <p>“The disposal of the rail and ferry operations to the New Zealand Government, will give rail in New Zealand the opportunity to move forward in an environment with greater clarity and ability to better plan its development," Mr Little said. </p> <p>"We are very proud of our achievements in managing the rail assets and believe that the Crown is acquiring a well run business with a highly motivated workforce. </p> <p>"I am also pleased that the Crown has acknowledged the role that Toll has played in improving the efficiency of rail freight movements within New Zealand. </p> <p>“The sale will result in Toll retaining Toll Tranzlink, the company’s rail and road forwarding business, together with warehousing and contract logistics operations. </p> <p>"We support the Government’s objective of boosting capital spending on rail and our New Zealand freight businesses will continue to be major users of rail capacity. </p> <p>“While we had not been looking to sell the rail operating business back to the Government, the sale has enabled us to re-focus our efforts on accelerating growth in our road and rail forwarding and logistics businesses, and this will include acquisition based growth. </p> <p>“New Zealand remains a vital and attractive market for Toll both from a domestic and cross-border viewpoint.” </p> <p>Toll Holdings bought rail operator Tranz Rail in 2003 when the rail network was in dire need of upgrading and for freight services to be improved.</p> <br />
